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The Federal Direct Subsidized and Unsubsidized Loans are low-interest loans designed to provide undergraduate and graduate students with additional funds for college. This loan may be Subsidized (based on need), Unsubsidized, or a combination of both. The interest rates for these loans are set by the Federal Government.

Currently, the interest rates for Subsidized loans for the 2012-2013 academic year are 3.4%. This interest rate is a result of a freeze implemented by Congress in July 2012 and is subject to change. The interest rates for Subsidized loans for the 2013-2014 academic year may increase to 6.8% by July 1. We will post the correct interest rates as soon as they are determined by Congress.

The interest rates for Unsubsidized loans are fixed at 6.8%. The U.S. Department of Education will withhold an origination fee of one percent (1%) of the total loan amount for loans disbursed after July 1st, 2013.

Borrowers of these Federal Direct Loans have a six-month deferral (grace) period following graduation or withdrawal before entering repayment. If a student falls below half-time enrollment, the six-month deferral period will begin.

Currently, the Federal Government pays the interest that accrues during in-school and grace periods on the Direct Subsidized Loan. New Subsidized loans disbursed from July 1,2012 to June 30, 2014 will not be eligible for subsidized interest benefits during the six-month grace period after a student graduates or falls below half-time enrollment. Interest will accrue during the grace period and will be capitalized if unpaid by the borrower.

The Direct Unsubsidized Loan accumulates interest while the student is enrolled.

In order for us to certify and credit your account with the Direct Loan, you must complete a three-step process:
1. Sign and return your financial aid award letter within three weeks of
     receipt. Faxes and scanned copies are not accepted. Please
     remember that only the student can sign their acceptance of the
     award.
2. Complete Entrance Counseling with Direct Loan Servicing.
     This is a twenty-minute online tutorial designed to acquaint first-time
     Direct borrowers with the rights and responsibilities for this
     educational loan.
* If you have previously borrowed at Warren Wilson College through
     the Federal Direct Loan Program, you are not required to complete
     Entrance Counseling again. However, it is highly recommended
     that you do so!
3. Complete a Master Promissory Note (MPN) with the Federal
      Department of Education.
    * If you have previously borrowed at Warren Wilson College through
      the Federal Direct Loan Program, you will not need to complete a
      new MPN.

        A credit for the loan will not be posted
       to your account until the above three
                 steps have been completed!

Entrance Counseling: www.studentloans.gov
MPN: www.studentloans.gov

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Direct Loans 2013-2014

FEDERAL DIRECT SUBSIDIZED AND UNSUBSIDIZED LOANS FOR UNDERGRADUATE STUDENTS

A credit for the loan will not be posted to your account until the above three steps have been completed!

A credit for the loan will not be posted
to your account until the above three
steps have been completed!